DBS Bank Ltd, which currently has total assets of SGD 646 billion, is continuing its plan to provide financial institutions with access to asset digitization.
At the end of last year, we first informed you that DBS Bank is launching its own crypto exchange DDEx, which opened its gates only for financial institutions and professional market makers.
However, not much time has passed and the latest evidence that DBS is constantly working to expand its products is the announcement of the release of the first STO on DDEx.
This DBS Digital Bond, whose price is SGD 15 million, is intended to pave the way for other issuers and clients who can use DDEx to issue their STOs and thus asset tokenize.
Our maiden STO listing on the DBS Digital Exchange is a significant milestone, as it highlights the strength of our digital asset ecosystem in facilitating new ways of unlocking value for issuers and investors. This cements our ability to provide integrated solutions across the digital asset value chain, from deal origination to tokenisation, listing, trading, and custody, which in turn opens the door for more STOs on DDEx. We expect asset tokenisation to increasingly become more mainstream as more of our clients start to embrace security token issuance as part of their capital fund raising exercise which we believe will boost Singapore’s ambitions to be a digital asset hub in Asia, said Capital Markets Managing Director, Eng-Kwok
The DBS Digital Bond will follow the current legal framework, which also governs traditional bonds, which provides the same legal protection for all investors.
It will be possible to trade a digital bond from the amount of SGD 10,000, which is a significantly lower denomination, mainly in order to support wider investor participation.